CQ workers stood down after mine floods

HUNDREDS of workers at Caledon Resources' Cook Colliery are expected to be stood down after a meeting was called this morning at the mine's site in Blackwater.

In a formal statement today the company announced several expenditure reduction measures to be implemented, including the termination of contract agreements and the standing down of some of the workforce for an "expected" two month period.

The move follows a significant water inflow event on March 7 in the longwall section of the mine, where water from an unknown source fully inundated the longwall face and equipment.

The Cook Colliery is the company's sole operating asset and source of income, and 85% of the Cook's coal production is sourced from the longwall mining area that was inundated.

"The loss of revenue from its primary production source will have a major financial impact on the company," Caledon's statement reads.

"As a result, it has been necessary to implement several measures to reduce expenditure.

"Most site contractors will be demobilised and, where appropriate, contract agreements will be terminated to avoid ongoing losses.

"Regrettably, it is also necessary to stand down some of the workforce at Cook Colliery for an expected two month period under the terms of the Cook Colliery Enterprise Agreement.

"This is not a decision the company takes lightly but it is necessary in the circumstances.

"To alleviate the financial impact on employees, the company will provide affected employees with the opportunity to access accrued annual leave or long service leave entitlements for the relevant period instead of being stood down."

The number of workers affected by this is still being investigated by The Morning Bulletin.